The Shangai Composite Index Closes 0.25% Higher

The Shanghai Composite edged up 0.1% to 3,940.4 on Wednesday, while the Shenzhen Component rose 0.5% to 13,767, even as renewed inflationary pressures from higher energy costs added to concerns about China's slowing economy. Annual consumer inflation rose to 0.8% in August, matching forecasts and accelerating from a six-month low of 0.5% in July. Producer price inflation also picked up to 3.8% from a three-month low of 3.5%, exceeding market expectations of 3.7%. The pickup in inflation was driven mainly by higher energy costs amid ongoing Middle East tensions. While the country has emerged from a prolonged period of deflation, weak consumer demand continues to limit companies' ability to pass rising costs on to households as the economy slows and fiscal support becomes more restrained. Notable gainers included Hygon Information Technology (3.9%), Zhongji Innolight (1.7%), Luxshare Precision Industry (1.1%), and Suzhou Dongshan Precision (3.1%).

The Shangai Composite Index rose 10 points or 0.25 percent on Tuesday to close at 3943 points. Leading the gains are Avic Aviation Engine (5.82%), Kangmei Pharma (5.07%) and Metallurgical (3.54%). Top losers were Fuyao Glass Indu (-2.60%), Sanan Optoelectron (-1.84%) and Jiangsu Hengrui (-1.36%).

The Shanghai Composite gained 0.20% to close at 3,940.6 on Tuesday, while the Shenzhen Component fell 0.52% to 13,703.2, even as robust trade figures highlighted strong external demand. Exports jumped 25% year-on-year to USD 401.4 billion in August from 23.9% in July, while imports surged 28.2% to USD 282.4 billion, extending double-digit gains for an eighth straight month. The trade surplus widened to USD 119.1 billion from USD 101.1 billion a year earlier and in line with forecasts. The strong trade performance comes as the US intensifies pressure on China to reduce trade imbalances. Tensions between Beijing and Brussels are also escalating ahead of an October deadline to address trade disparities that EU leaders increasingly regard as a strategic concern. Energy stocks, including PetroChina (2.54%), CNOOC (3.83%) and China Petroleum & Chemical (4.10%), gained, while CATL (-3.65%), Suzhou Dongshan Precision (-2.17%) and Hangzhou Hikvision Digital Technology (-3.50%) declined.